Superglass confident
Published:  18 January, 2010

STIRLING: Insulation manufacturer Superglass Holdings is upbeat about future tradng prospects.

Alex McLeod, chief executive the insulation company said at the firm's annual general meeting last week, that trading between September and January had been "in line" with management's expectations.

Profits at the company slumped 44% in the year to 31 August as the downturn in the construction sector took its toll but recent trading has been buoyed by a new contract with a builders' merchant buying group.

In its IMS for the period from September Superglass says new initiatives such as the Superdad campaign are beginning to bring benefits.

'The company has successfully broadened its customer base by securing new business with a leading independent builders' merchant buying group and is also beginning to see the benefits of reduced energy costs.

Mr McLeod said: 'We remain highly focused on delivering efficiency improvements and reducing input costs." Net debt has been cut by a further 1.1m since the August 31 year end and the group is operating comfortably within its covenants.

Superglass says the residential carbon-saving market, driven by the CERT programme, has continued to slow as funding from energy retailers has been restricted.

'The recently announced ending of direct mail-out of light bulbs from January 1 will bring some benefits, and the 20% uplift in the value of the scheme will favour insulation," Mc:eod said

"It is hoped that consultation on the uplift will be completed before the forthcoming general election to encourage release of funding which we would expect to generate higher insulation volumes in the final quarter of 2010.

"Outside CERT, short-term demand is difficult to predict, non-residential activity remains weak, but signs are positive from the new-build housing sector."

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